European open banking platform TrueLayer is working with Cazoo, a UK online car retailer, to offer instant payments and refunds for its customers.
Cazoo’s service gives sellers an offer within seconds which is guaranteed for seven days. Customers can either opt to have their car picked up from their home or drop it off at ta Cazoo Customer Centre with payment made directly to the seller’s bank account on the same day,
TrueLayer worked with Cazoo to overcome costly issues most commonly associated with traditional card payments, such as high failure rates due to card payment limits, potential fraud and chargebacks, and slow refund mechanisms. For retailers with high order values, these issues can add up to a significant impact on the bottom line and further erode profit margins.
TrueLayer’s PayDirect platform has been integrated by Cazoo to offer instant payments, powered by open banking that removes card and interchange fees, and delivers an instant transaction confirmation. Customers should see an easier checkout by securely connecting to their bank to confirm payment. PayDirect also supports Cazoo’s return policy, offering instant refunds to the purchaser should they change their mind, compared to up to five days for refunds for card-based payments.
Cazoo has also implemented instant seller payments, using TrueLayer’s open banking platform. This authenticates a seller by comparing the account holder name to their bank details in three clicks, rather than the traditional method of uploading bank statements that can take days to be reviewed and validated. With the seller’s details pre-populated and verified, Cazoo can make instant payout via TrueLayer and eliminate the risk of failed transactions arising from invalid bank details.
“With refunds there is a high level of financial anxiety if you don’t get thousands back in your bank account right away,” Cazoo CTO Jonathan Howell said. “The ability to return that money in a quick, transparent and frictionless way creates a superior customer experience. Open banking, delivered by TrueLayer’s technology, provides us with that.”
“Cazoo appreciates that consumers are increasingly dissatisfied with the traditional ways of buying or selling a used car,” TrueLayer head of e-commerce Roger De’Ath said. “They’re an industry innovator, determined to make the end to end process, including the checkout and payments, as hassle free as possible. With TrueLayer supporting instant bank payments for purchases and the ability to process instant refunds through PayDirect, it has created an incredibly powerful proposition. We’re proud to be working with such a forward-thinking business and look forward to collaborating with Cazoo to ensure the best possible experience for its customers.”
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